What is the HSN Code for Copper Wire?
Copper wire is a key input in electrical wiring, motors, transformers and many other industrial products. Under GST it is classified based on whether the wire is bare copper or insulated for electrical use. Bare copper wire appears under the chapter for copper and articles of copper, while insulated copper wire generally comes under the chapter for insulated wires and cables.
Correct HSN classification is important because many businesses deal both in bare copper wire and finished insulated cables. Since the codes and descriptions are different, invoices and records should clearly mention whether the product is bare copper wire, insulated electrical wire or scrap copper arising from cutting and stripping.
How Copper Electrical Wire is Classified under HSN
Bare copper wire that has not yet been insulated usually falls under the heading for copper wire. This heading covers wire made of refined copper or copper alloys in various gauges. Such products are commonly sold to cable manufacturers, transformer manufacturers and industrial users who further process the wire.
Once copper wire is insulated with PVC or other materials and is ready for installation as an electrical conductor, it is classified under the heading for insulated wires and cables. This heading covers building wires, flexible cables, automotive cables and many other varieties. The sub heading depends on voltage rating, number of cores and other technical features.
Here are some commonly used HSN codes and GST rates for this category:
| HSN Code | Product Name | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|---|
| 7408 | Bare copper wire | Uninsulated copper wire used as an input for further processing | Bare copper wire | 18% |
| 8544 | Insulated copper electrical wire | PVC or rubber insulated copper wires and cables for electrical use | Insulated electrical wire | 18% |
| 7404 | Copper wire scrap | Copper wire scrap and waste generated during cutting and stripping | Copper scrap | 18% |
Where government announces concessional rate for certain types of scrap or for renewable energy projects, relevant notifications should also be checked along with the base rate shown above.
The Importance of Correct Copper Wire HSN Code for GST
Using the correct HSN code for copper wire ensures that GST is charged at the correct rate and that buyers can claim input tax credit without difficulty. Wrong classification can create mismatches between purchase and sales records and may result in objections from the tax department during audit.
Businesses dealing in copper wire should maintain detailed product masters that define description, size, type of insulation and applicable HSN code. Where both bare copper wire and insulated cables are sold, separate codes and descriptions should be used in billing software so that reports and GST returns remain accurate.
GST on Copper Wire Products and Their Taxation
Under GST copper wire and copper cables usually attract the standard GST rate for industrial goods. This rate applies both to domestic production and to imported material. Input tax credit is generally available to businesses that use copper wire in further taxable supplies such as manufacturing of finished electrical equipment.
When copper wire is exported or supplied to a special economic zone, zero rated supply provisions may allow the supplier to export without payment of tax against bond or to export on payment of tax and claim refund. In all such cases correct HSN classification remains important for smooth processing of refunds and claims.
I’m CA Mohammad Abid Khan, a Chartered Accountant based in Varanasi with 10 years of experience. I specialize in GST and Income Tax, helping individuals and businesses stay compliant and optimize their taxes. I hold B.Com and M.Com degrees and enjoy simplifying finance through practical, easy-to-understand content.
Frequently Asked Questions
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What is the HSN code for copper wire?
Bare copper wire that is not insulated is generally classified under HSN 7408 as copper wire. Insulated copper electrical wires and cables used for wiring and installations are usually classified under HSN 8544. Copper wire scrap and waste generated during cutting or stripping normally fall under HSN 7404.
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Are copper electrical wires classified differently under HSN?
Yes. Bare copper wire and insulated copper electrical wire come under different HSN headings. Bare copper wire is generally covered under HSN 7408, which deals with copper and articles of copper. Once the wire is insulated with PVC or other material and ready for electrical installation, it is typically classified under HSN 8544 for insulated wires and cables.
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How does the HSN code for copper wire affect GST calculation?
The HSN code decides which GST rate applies and how the item is reported in GST returns. Copper wire, insulated cables and copper scrap are usually charged at the standard GST rate for industrial goods, which is commonly 18 percent. Using the correct HSN code helps apply the right rate, avoids mismatches between purchase and sales records and makes input tax credit claims smoother.
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Can HSN codes vary based on wire gauge or thickness?
Basic HSN classification for copper wire is based mainly on whether the wire is bare, insulated or scrap. Within these headings, sub headings can differ based on gauge, thickness, voltage rating and number of cores, especially for insulated cables. However, the main HSN heading remains in the same range, such as 7408 for bare wire and 8544 for insulated electrical wires and cables.
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What is the impact of GST on copper wire importation?
When copper wire or cables are imported, the same HSN codes are used for customs and GST purposes. GST at the applicable rate, usually the standard industrial rate, is charged along with customs duties. Registered businesses can normally claim input tax credit on this GST when the copper wire is used for further taxable supplies, such as manufacturing electrical equipment, provided the classification and documentation are correct.